Audit pronounces Mebane in good financial shape

By Natalie Allison Janicello

Published: Monday, January 6, 2014 at 10:58 PM.

MEBANE — Auditors gave the city a clean opinion on its finances for last fiscal year, noting that Mebane’s net position had increased $4.7 million over what it was in 2012. Becky Loy, a partner at Cobb Ezekiel Loy & Co. in Graham, said Mebane’s net position, or essentially its assets minus liabilities, was almost $78 million. That includes “every vehicle, sidewalk, storm drain — all the capital assets the City of Mebane has paid for over the years,” Loy said. As of June 30, the city had $11.7 million in its general fund, which, if Mebane received no additional revenue, would allow the city to continue to operate for 10 months, she said. The general fund balance represents an increase of 5 percent over the past five years, and 42 percent over the past 10 years. Revenues were up $785,000, or 7 percent, from last year, and expenditures were up $386,000, or 4 percent. Loy described Mebane’s tax base as “very strong,” with a $55.6 million, or 4 percent, increase since 2012. She said over the past five years, real property tax revenue rose about 34 percent, and personal property, 10.3 percent. The agency suggested the city tighten up its policy on shutting off utilities to customers who haven’t paid their bills on time, and Loy said they noticed a number of people continued to receive services much longer than they should have. “There are some customers who continue to get water and sewer who should not,” Loy said, adding that some far exceed the 60-day period the city gives for customers to pay. “The write-offs were getting bigger and bigger and bigger.” City Manager David Cheek said the city had undergone some “transition issues” in the billing department, but that unpaid utility bills hadn’t significantly affected revenues, and that “95-plus percent” of bills are paid. “We’re fairly patient with folks as far as the cut-off goes,” Cheek said. “We don’t jump to cut someone off, typically, if they’re late one month. If they’re late the second month, that’s when the policy goes into effect.”

AT ITS JANUARY meeting Monday night, the council approved the annexation of land on Mebane Oaks Road that will be the site of the new Southside Fire Station. The property is next to Agape Baptist Church and isn’t far from the city limits. “Even though it’s very close, there is some land that separates it” from the city line, Assistant City Manager Chris Rollins said. The council approved an amendment to the Interlocal Economic Incentive Financing Agreement for Project Swordfish, which involves the construction of a Wal-Mart distribution center. Cheek said recent estimates for utility revenue from the facility are only 20 percent of what was originally projected, so the county will reimburse both Mebane and Graham $100,000 per year for five years, beginning in 2015. “The county agreed to step up to the plate and support us there,” he said.

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MEBANE — Auditors gave the city a clean opinion on its finances for last fiscal year, noting that Mebane’s net position had increased $4.7 million over what it was in 2012.
Becky Loy, a partner at Cobb Ezekiel Loy & Co. in Graham, said Mebane’s net position, or essentially its assets minus liabilities, was almost $78 million. That includes “every vehicle, sidewalk, storm drain — all the capital assets the City of Mebane has paid for over the years,” Loy said.
As of June 30, the city had $11.7 million in its general fund, which, if Mebane received no additional revenue, would allow the city to continue to operate for 10 months, she said. The general fund balance represents an increase of 5 percent over the past five years, and 42 percent over the past 10 years. Revenues were up $785,000, or 7 percent, from last year, and expenditures were up $386,000, or 4 percent.
Loy described Mebane’s tax base as “very strong,” with a $55.6 million, or 4 percent, increase since 2012. She said over the past five years, real property tax revenue rose about 34 percent, and personal property, 10.3 percent.
The agency suggested the city tighten up its policy on shutting off utilities to customers who haven’t paid their bills on time, and Loy said they noticed a number of people continued to receive services much longer than they should have.
“There are some customers who continue to get water and sewer who should not,” Loy said, adding that some far exceed the 60-day period the city gives for customers to pay. “The write-offs were getting bigger and bigger and bigger.”
City Manager David Cheek said the city had undergone some “transition issues” in the billing department, but that unpaid utility bills hadn’t significantly affected revenues, and that “95-plus percent” of bills are paid.
“We’re fairly patient with folks as far as the cut-off goes,” Cheek said. “We don’t jump to cut someone off, typically, if they’re late one month. If they’re late the second month, that’s when the policy goes into effect.”

AT ITS JANUARY meeting Monday night, the council approved the annexation of land on Mebane Oaks Road that will be the site of the new Southside Fire Station. The property is next to Agape Baptist Church and isn’t far from the city limits.
“Even though it’s very close, there is some land that separates it” from the city line, Assistant City Manager Chris Rollins said.
The council approved an amendment to the Interlocal Economic Incentive Financing Agreement for Project Swordfish, which involves the construction of a Wal-Mart distribution center.
Cheek said recent estimates for utility revenue from the facility are only 20 percent of what was originally projected, so the county will reimburse both Mebane and Graham $100,000 per year for five years, beginning in 2015.
“The county agreed to step up to the plate and support us there,” he said.